The Texas governor - who has been flailing in recent polls - will unveil his own proposal next week, in which he says he will scrap the current tax laws and impose a flat tax.

Perry did not detail what the flat tax would be, but promised a crowd at the Western Republican Leadership Conference in Las Vegas that it would eliminate the "3 million words of the current tax code."

He joked it would be "so simple that even Timothy Geithner can file his taxes on time," referring to the Treasury Secretary who owed $34,000 in payroll and Social Security taxes from 2001 and 2002.

A flat tax applies the same tax rate to every income level. The current code is progressive, meaning the government taxes those with higher incomes at higher rates and those with lower incomes at lower rates.

Liberal and moderate critics of the plan argue a flat tax would hit poor and middle class Americans the hardest - or it would decrease the total amount of revenue the federal government brings in. Many conservatives believe the flat tax would be fairer system because everyone is taxed at the same rate.

Both parties have argued the current tax code is too complicated and filled with loopholes that allow specific groups to pay less.

Perry's plan is dramatically different from frontrunner Mitt Romney's, who says he'd lower the corporate tax rate and lower taxes on savings and investment income.

Cain's 9-9-9 plan, which would also scrap the current tax regime in favor of a 9% flat income tax for all Americans, has been taking center stage at recent debates.

The ex-pizza business magnate's proposal would also slash the corporate tax rate to 9% - big corporations are currently taxed at 35%. And it would introduce a new 9% national sales tax - an addition to the state or city sales taxes that Americans already pay.

Critics and the Republican nominees have assailed Cain's plan, insisting it would raise taxes on the poor and middle class and would face an uphill battle in Congress.

Flat tax to be proposed by Rick Perry. Does a flat tax make sense?Flat tax: Texas governor and Republican presidential candidate Rick Perry announced Wednesday that he would propose a flat tax as part of an overhaul of the country's tax code.

By Steve Holland, Reuters / October 20, 2011

Las Vegas

Republican presidential candidate Rick Perry said on Wednesday he will propose a flat tax as part of an overhaul of the U.S. tax code as he seeks to claw his way back to the top tier of the 2012 race.

A day after a bruising debate with his rivals for his party's presidential nomination, the Texas governor told participants at a conference of Western Republicans that he will outline his economic growth package next week.

He has a speech planned for October 25 in South Carolina, the state where he first announced his candidacy in August and which holds an important early contest in the road to the Republican nomination.

"I want to make the tax code so simple that even Timothy Geithner can file his taxes on time," Perry said, referring to President Barack Obama's treasury secretary, who was famously late in filing tax returns.

Perry jumped into the front-runner position when he announced his candidacy two months ago. But a series of shaky debates has left him trailing former Massachusetts Governor Mitt Romney and businessmanHerman Cain in the race to pick the Republican candidate who will challenge Democratic President Barack Obama in November 2012.

Perry exchanged sharp blows with Romney at the CNN-sponsored debate in Las Vegas on Tuesday night in an acrimonious exchange over illegal immigration that generated front-page headlines and photographs.

Without mentioning Romney by name, Perry told the Western Republicans that he was not the establishment candidate, but was a true conservative. The Texan wants to re-establish himself as the alternative to Romney -- a distinction that, at least temporarily, has been filled by Cain.'Unbridled truth'

Perry ridiculed U.S. news organizations that have declared that Romney looks to be the eventual nominee, saying, "Primary voters and caucus voters haven't gotten that memo yet."

"You will not hear a lot of shape-shifting nuance from me," he said. "I'm going give the American people a huge helping of unbridled truth."

At the debate, Perry criticized Cain's proposal for a 9-9-9 tax reform overhaul that many Republicans have found appealing. It would limit personal and corporate income taxes to 9 percent while creating a 9 percent national sales tax.

In his Wednesday speech, Perry said he would scrap the "3 million words of the tax code, starting over with something simpler, a flat tax," and end lawmakers' ability to attach individual spending projects -- known as earmarks -- to appropriations bills.

Perry said he also would propose an amendment to the U.S. Constitution to require that the federal budget always be balanced. This has been a long-time goal of conservatives but hard to accomplish because it would require congressional passage and ratification by two-thirds of the states.

"I will barnstorm this country from Day One by going to all 50 states if that's required for a balanced-budget amendment," he said.

Steve Forbes, who has been advising Rick Perry btw, has stated that Perry's plan is very similar to the one Forbes came up with years ago. In it, X amount of income is exempt from the flat tax, so people making less than that won't be affected at all. I outlined a similar plan in another thread a few months ago. So, you know I would support this since I believe it's the best tax system available to us. Besides, it would result in kicking 60,000 IRS agents to the curb.

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October 20th, 2011, 2:41 pm

Pablo

RIP Killer

Joined: August 6th, 2004, 9:21 amPosts: 9898Location: Dallas

Re: Rick Perry, to propose national flat tax

How about this if we stick with the progressive income tax, if you pay no federal income tax you don't get to vote (this includes 7,000 millionaires who don't pay). Imagine if you take this 47-51% (depending on who you believe) out of the voting public how that would change the political landscape.